'In Full Compliance With SEBI Regulation,' Adani Group Clarifies On Probe After Investors Lost Over Rs 19,000 Crore

SEBI is investigating some Adani Group companies with regard to compliance with regulations. After the reply, six listed firms of the Adani Group lost over Rs 19,000 crore in market capitalization.

Mumbai: Gautam Adani led Adani Group on Monday issued a clarification after the government said SEBI is investigating some Adani Group companies, leading Adani Group shares end in red in the Indian exchanges.

The state finance minister Pankaj Chaudhary in a written reply in the Parliament, said, “SEBI is investigating some Adani Group companies with regard to compliance with SEBI Regulations. Further, the Directorate of Revenue Intelligence (DRI) is investigating certain entities belonging to the Adani Group of Companies under laws administered by it.”

After the reply, the six listed firms of the Adani Group lost over Rs 19,000 crore in market capitalization.

Adani Enterprises shares fell 1.01% to close at Rs 1380, Adani Port and Special Economic Zone (APSEZ) shares closed 2.08% at Rs 673.7, Adani Power shares closed 2.8% at Rs 102.3, shares of Adani Transmission shares closed down 4.07% at Rs 969, Adani Green Energy shares closed down 2.76% at Rs 976.15 while shares of Adani Total Gas dipped 4.77% at Rs 856.4.

When asked about comments, Adani Spokesperson said, “We have always been transparent with all our regulators and have full faith in them. While we have always been fully compliant with applicable SEBI regulations, we have made full disclosure to SEBI on specific information requests from them in the past. However, we have not received any communication or information requests recently.”

The minister, in his reply, also said that SEBI had directed depositories to freeze particular beneficiary accounts of certain FPIs, including Albula Investment Fund Ltd., Cresta Fund Ltd., and APMS Investment Fund Ltd. However, no order regarding other beneficiary accounts of these three FPIs has been passed by SEBI.

About the DRI investigation, Adani Group spokesperson said, “it issued a show-cause notice to Adani Power about 5 years back. Subsequently, DRI passed an order in favour of Adani Power, confirming that there is no over-valuation of equipment. The department has approached the Tribunal, and the matter stands sub judice now. Adani Group is a responsible corporate citizen and strongly believes in compliance of applicable laws and adheres to prudent corporate governance framework.”